Materialise (NASDAQ:MTLS) reported second-quarter revenue growth of more than 8% year over year to €70.1 million, driven by double-digit expansion in its Medical segment and continued improvement in profitability. The company raised its full-year adjusted EBIT outlook while maintaining its revenue guidance, despite the anticipated revenue effect of divesting its RapidFit and Eyewear businesses.
Chief Executive Officer Brigitte de Vet said the company’s first-half performance supported its confidence in its 2026 plan. Materialise now expects full-year adjusted EBIT of €12 million to €14 million, up from its prior forecast of €10 million to €12 million. It reaffirmed revenue guidance of €273 million to €283 million.
Second-Quarter Financial Results
Net profit totaled €3.3 million, or €0.06 per share. For the first half, net profit was €5.1 million, or €0.09 per share, while revenue increased nearly 4% to €136.3 million. First-half adjusted EBITDA was €17.6 million and adjusted EBIT was €6.4 million.
Chief Financial Officer Koen Berges attributed the margin improvement to revenue growth, cost management, operational efficiencies and a sharper focus on core growth segments. Operating expenses increased 3.9% in the quarter, while research-and-development spending exceeded €12 million, up 11% year over year. Materialise said it continued to make targeted investments in new products and growth opportunities.
The company ended the quarter with €133.7 million in cash and €59.5 million in gross debt, resulting in net cash of €74.2 million, up €3.4 million from the beginning of the year. It spent €5.2 million during the first six months on share repurchases, acquiring nearly 1.1 million American depositary shares, or 1.8% of its share base as of June 30.
Medical Leads Growth as Software Revenue Declines
Medical revenue increased more than 12% in the second quarter, with medical-device revenue up 19% across partner and direct-sales channels. Medical software revenue declined 4%. The Medical segment generated adjusted EBITDA of €11.6 million, representing a 31% margin.
De Vet told analysts that Medical’s sustainable structural growth rate should be in the low-double digits, or around 10%, though quarterly results can vary because of timing effects. She said softer medical-software revenue partly reflected reduced research grants at U.S. academic centers, which use Materialise software for training and research but do not typically purchase its device and service offerings.
She also cited differing reimbursement conditions across the markets served by the company. Materialise’s software portfolio has historically been more concentrated in orthopedics, where reimbursement changes in the U.S. have contributed to more cautious customer spending, she said.
During the quarter, Materialise announced an investment in Belgian medtech startup Replasia, which develops personalized 3D-printed solutions and anatomical-analysis software for hip preservation. De Vet said the investment complements Materialise’s hip-replacement portfolio and broadens its position in personalized hip care as the market moves toward less invasive treatments.
Software Transition and Manufacturing Portfolio Changes
Software revenue declined 3% to €9.6 million in the second quarter, as customers remained cautious and sales cycles lengthened in the industrial market. However, 86% of software revenue was recurring as the company neared the completion of its transition from perpetual licenses to a subscription model.
Materialise released CO-AM Pro on May 15, one month ahead of schedule. The cloud-based offering is integrated with Magics and combines additive-manufacturing data management with build preparation. The company also formally released its CO-AM Bricks automation platform and began early-adopter programs for CO-AM NPI and CO-AM Enterprise.
De Vet said the NPI and Enterprise offerings are expected to be longer-term software growth drivers because they target companies seeking to scale established additive-manufacturing operations, particularly in aerospace and defense. Software adjusted EBITDA declined to €1 million during the quarter as lower revenue and investment in new functionality weighed on results.
Manufacturing revenue rose nearly 7% to €23.6 million despite the impact of the RapidFit divestment. Aerospace revenue grew 40%, while continued weak prototyping demand partly offset growth in series manufacturing. The segment’s adjusted EBITDA loss narrowed to €0.3 million from a €4.8 million loss a year earlier.
Materialise completed the transfer of RapidFit to its management team on April 30 and closed the transfer of its Eyewear business on July 1. The company retained a 20% minority stake in Eyewear. Berges said the transactions are intended to focus capital and management resources on business lines with stronger long-term scaling potential.
Leadership Changes and Outlook
Materialise also announced executive committee changes effective in early September. Annelies Smits-Ottens will join as chief human resource officer, and Philippe Verlinden will assume the newly created role of chief digital and information officer. The company is also seeking a new leader for its Medical segment, with current Medical leader Koen Peters set to leave in September.
On the earnings outlook, Berges said Materialise expects typical seasonal patterns to persist, with the third quarter generally softer and the fourth quarter usually stronger. He said extrapolating first-half EBIT would place the company near the middle of its updated full-year guidance range.
About Materialise (NASDAQ:MTLS)
Materialise NV is a Belgium-based company specializing in 3D printing software and additive manufacturing services. Through its dual focus on software and printing, the company addresses a wide range of industries, including automotive, aerospace, consumer goods, and healthcare. Materialise’s offerings span from design and simulation tools to end-to-end production, delivering both standardized and highly customized parts across polymer and metal platforms.
On the software side, Materialise develops a suite of proprietary applications—such as Magics for data preparation, Mimics for medical image processing and patient-specific modeling, and Streamics for production workflow management.
